Software-defined networking looks set to be the next big thing now that servers and storage have been virtualized. Cisco should be worried.

Sources: VMware / GigaOM

VMware and Nicira – Advancing the Software-Defined Datacenter
Today I am extremely excited to announce VMware’s acquisition of Nicira, a 5-year-old company that has pioneered software-defined networking (SDN) and is the leader in networking virtualization for heterogeneous infrastructure environments and clouds. When combined with the outstanding networking team and technologies already at VMware, I believe we have the same opportunity to do for networking what we’ve already done for servers and many other parts of the datacenter. In fact, the people, passions, ecosystem, and industry-transforming opportunity reminds me very much of the early days of VMware’s server virtualization efforts!